“As of this morning, gas prices around Dundas have dropped by an average of 12%. This is a result of a drop in global oil prices to a 47-month low. The global price of oil now stands at $84 per barrel, about $31 cheaper than its highest price this year. This comes as the global price of oil was relatively stable for nearly four years, averaging about $110 per barrel.”
“Experts say the sudden drop is partly tied to production enhancement in the United States, Canada, and Iraq. A drop in demand caused by a weak global economy is also thought to be another reason for the plunge.” – [Source]
I personally think that the real reason behind this surprise is purely political and is part of unofficial sanctions targeting the economy of Russia, which largely depends on exports of crude oil and natural gas. If this is true, this trend will last for a while. Whatever the case might be, here are the real numbers around Dundas, at 8:00 a.m. this morning:
- Petro Canada on Cootes: 117.9
- Pioneer on Cootes: 117.6
- Esso on Main: 117.9
- Shell on Main: 115.9
The winner is:
As we can see, the global oil prices decreased by 23.6 percent. The average prices at gas stations around Dundas decreased by about 12 percent. Even considering the cost of gas station operations, we can still expect further reduction.
Moreover, as food prices began to rise in the fall of 2006, we were told that this was caused by the increase in gas prices. Consequently, we can now expect a reduction in food prices in our monopolized supermarkets. Then, all other prices should be reduced, as all of them depend on energy-consuming production, transportation, and warehousing.